Investors Don't Like Acqui-hires(uncrunched.com) |
Investors Don't Like Acqui-hires(uncrunched.com) |
All of the comments on the pandodaily article revolved around the fact that VC doesn't get their homerun payday during an acqui-hire.
It seems like the discussion around acqui-hires revolves around what the commenter's personal interests are for the most part.
However, it makes sense that the acqui-hire would become more prevalent for a couple reasons. There are many more startups being created, both increasing the supply of startups to acqui-hire and decreasing the %age of startups that exit in a home run. Also, the market price for developers is going up, and seeing someone execute and deliver a product in a product vertical you want to execute in makes you worth a large multiple of an unknown and/or average developer.
The best operators are always going to get the best terms, but an industry-wide concern over acqui-hires could easily manifest itself in poorer terms for everyone else.
If they're trying to protect against people who quit too easily or aim too low then they made the wrong bet, they're not going to avoid this if they predefine a price or terms where it's a very mediocre OK.